| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 381 |
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| 5 | 5 | | To amend the Truth in Lending Act to cap credit card interest rates at |
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| 6 | 6 | | 10 percent. |
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| 7 | 7 | | IN THE SENATE OF THE UNITED STATES |
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| 8 | 8 | | FEBRUARY4, 2025 |
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| 9 | 9 | | Mr. S |
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| 10 | 10 | | ANDERS(for himself and Mr. HAWLEY) introduced the following bill; |
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| 11 | 11 | | which was read twice and referred to the Committee on Banking, Hous- |
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| 12 | 12 | | ing, and Urban Affairs |
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| 13 | 13 | | A BILL |
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| 14 | 14 | | To amend the Truth in Lending Act to cap credit card |
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| 15 | 15 | | interest rates at 10 percent. |
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| 16 | 16 | | Be it enacted by the Senate and House of Representa-1 |
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| 17 | 17 | | tives of the United States of America in Congress assembled, 2 |
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| 18 | 18 | | SECTION 1. SHORT TITLE. 3 |
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| 19 | 19 | | This Act may be cited as the ‘‘10 Percent Credit Card 4 |
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| 20 | 20 | | Interest Rate Cap Act’’. 5 |
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| 21 | 21 | | SEC. 2. CAP ON CREDIT CARD INTEREST RATES. 6 |
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| 22 | 22 | | (a) I |
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| 23 | 23 | | NGENERAL.—Section 107 of the Truth in Lend-7 |
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| 24 | 24 | | ing Act (15 U.S.C. 1606) is amended by adding at the 8 |
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| 25 | 25 | | end the following: 9 |
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| 26 | 26 | | VerDate Sep 11 2014 22:06 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S381.IS S381 |
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| 27 | 27 | | ssavage on LAPJG3WLY3PROD with BILLS 2 |
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| 28 | 28 | | •S 381 IS |
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| 29 | 29 | | ‘‘(f)(1) The annual percentage rate applicable to an 1 |
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| 30 | 30 | | extension of credit obtained by use of a credit card may 2 |
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| 31 | 31 | | not exceed 10 percentage points, inclusive of all finance 3 |
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| 32 | 32 | | charges. 4 |
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| 33 | 33 | | ‘‘(2) Any fees that are not considered finance charges 5 |
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| 34 | 34 | | under section 106(a) may not be used to evade the limita-6 |
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| 35 | 35 | | tions of paragraph (1), and the total sum of such fees may 7 |
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| 36 | 36 | | not exceed the total amount of finance charges assessed. 8 |
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| 37 | 37 | | ‘‘(3) The taking, receiving, reserving, or charging of 9 |
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| 38 | 38 | | a credit card annual percentage rate or fee greater than 10 |
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| 39 | 39 | | that permitted under this subsection, when knowingly 11 |
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| 40 | 40 | | done, shall be deemed a violation of this title, and a for-12 |
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| 41 | 41 | | feiture of the entire interest which the note, bill, or other 13 |
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| 42 | 42 | | evidence of the obligation carries with it, or which has 14 |
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| 43 | 43 | | been agreed to be paid thereon. 15 |
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| 44 | 44 | | ‘‘(4) If a credit card annual percentage rate or fee 16 |
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| 45 | 45 | | greater than that permitted under this subsection has 17 |
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| 46 | 46 | | been paid, the person by whom it has been paid, or the 18 |
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| 47 | 47 | | legal representative thereof, may, by bringing an action 19 |
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| 48 | 48 | | not later than 2 years after the date on which the usurious 20 |
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| 49 | 49 | | collection was last made, recover back from the lender in 21 |
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| 50 | 50 | | an action in the nature of an action of debt, the entire 22 |
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| 51 | 51 | | amount of interest, finance charges, or fees paid. 23 |
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| 52 | 52 | | ‘‘(5) Any creditor who violates this subsection shall 24 |
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| 53 | 53 | | be subject to the provisions of section 130. 25 |
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| 54 | 54 | | VerDate Sep 11 2014 22:06 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S381.IS S381 |
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| 55 | 55 | | ssavage on LAPJG3WLY3PROD with BILLS 3 |
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| 56 | 56 | | •S 381 IS |
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| 57 | 57 | | ‘‘(g) Nothing in this section may be construed to pre-1 |
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| 58 | 58 | | empt any provision of State law that provides greater pro-2 |
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| 59 | 59 | | tection to consumers than is provided under this section.’’. 3 |
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| 60 | 60 | | (b) T |
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| 61 | 61 | | ECHNICAL AND CONFORMINGAMENDMENT.— 4 |
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| 62 | 62 | | Section 130(a) of the Truth in Lending Act (15 U.S.C. 5 |
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| 63 | 63 | | 1640(a)) is amended, in the matter preceding paragraph 6 |
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| 64 | 64 | | (1), by inserting ‘‘section 107(f),’’ before ‘‘this chapter’’. 7 |
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| 65 | 65 | | (c) S |
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| 66 | 66 | | UNSET.— 8 |
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| 67 | 67 | | (1) I |
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| 68 | 68 | | N GENERAL.—The Truth in Lending Act 9 |
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| 69 | 69 | | (15 U.S.C. 1601 et seq.) is amended— 10 |
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| 70 | 70 | | (A) in section 107 (15 U.S.C. 1606), by 11 |
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| 71 | 71 | | striking subsections (f) and (g); and 12 |
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| 72 | 72 | | (B) in section 130(a) (15 U.S.C. 1640(a)), 13 |
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| 73 | 73 | | in the matter preceding paragraph (1), by strik-14 |
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| 74 | 74 | | ing ‘‘section 107(f),’’. 15 |
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| 75 | 75 | | (2) E |
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| 76 | 76 | | FFECTIVE DATE.—The amendments made 16 |
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| 77 | 77 | | by paragraph (1) shall take effect on January 1, 17 |
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| 78 | 78 | | 2031. 18 |
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| 79 | 79 | | Æ |
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| 80 | 80 | | VerDate Sep 11 2014 22:06 Feb 28, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S381.IS S381 |
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| 81 | 81 | | ssavage on LAPJG3WLY3PROD with BILLS |
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